Get Organized the Easy Way

Okay, its a new year, and you've promised yourself you'll do a better job of getting your finances organized. Now what?

Actually, your options depend on how much time, effort, and money you are willing to spend. Financial software programs like Quicken, Microsoft Money, QuickBooks, etc. will allow you to set up simple or complicated classification schemes to help you better understand where your money goes, and tax preparation software like TurboTax and Tax Cut will help you file your income tax returns -- but how do you file all this stuff so you can pull what you need later? And what if you don't have time to enter everything right now -- how do you keep track of all the paper?

Here's a suggestion, and it will cost less than a dollar to implement. Take a sheet of blank paper, write the month and year in the top left corner, then create four column headings. In the first column, list the bills you normally have to pay each month. The second column should show the due dates and the fourth column should show the amount you plan to pay. Leave the third column for the date you pay the bill. This page will become your monthly control sheet, and you can adjust it on the fly as necessary.

As you pay your bills online, make electronic fund transfers between savings and checking, etc., date these documents and paperclip them to the back of the monthly control sheet. If you pay by check or transfer funds via telephone, just note the relevant information on a separate sheet of paper. Add anything to the package you think you'll need later -- just keep it simple (and in chronological order). You don't have to include all activity on the monthly control sheet -- just make sure the supporting documents for any major or noteworthy transactions are attached.

Each month will form a separate packet. Keep all packets for the year in a single manila folder.

Here's a bonus. Since the monthly control sheet lists all your major expenditures, you have also set up a simple budget for the month.

Voila! Organization the easy way.